By working as your agent, we can help you evaluate, and obtain higher offers than you would on your own. Here’s how…
We know what lenders look at, the algorithms they use, and priorities they place on skillsets, that factor into formulating sign-on money. It’s a highly variable offer climate, so we’ll give you some insight below. For more detail, or a personalized evaluation, call our office at (860) 383-8100.
“A nickel ain’t worth a dime anymore” — Yogi Berra
We’re halfway through the year, and the biggest talking point among those who are considering a move, or those who’ve recently received an offer; “What should a sign on look like in today’s climate?”.
2021 and 2022 sign-on money is long gone…
Volume is down 40-50% from last year, purchase volume is king, and refinances are all but gone. Prior to 2023, most lenders and banks would simply pull your MMI, Core Logic, or Warren Group report, and base an offer on your previous 12 month’s production. Sign-on money would be calculated on a basis-point equivalent (or percentage of production). Over the past two years, we’ve seen offers as high as 100bps of previous 12 month totals ( A 50M dollar producer got up to 500K in sign-on money in 2021/22). I coined it “the year of the last free agent contract”. In today’s market, you’ll find it tough to get more than half of that. Tough, but not impossible.
What can you expect for 2023? That depends on your 2023 purchase volume:
Today, most (if not all) lenders are more concerned with your Year To Date total’s than ever before. Regardless of how you did in 2022, and even as recent as the 4th quarter, your offer will be heavily weighted on 2023 purchase numbers.
“Let’s say you closed >20M in 2022, and YTD you’ve closed >5M. What can you expect from a competing lender, regarding an offer?”
Short answer; the more purchase volume you’ve closed, the stronger the offer. Every company has other deciding factors, such as source of business, realtor relationships, length of time at previous lender, etc., which can positively effect your offer. Because of a wide range of factors, it’s better to have a discussion over the phone. I can better assess what an offer could look like, and how it would vary at most major lenders and banks in today’s market. Ring me at (860) 383-8100.
What if you’re working under a 12-24 month retention/claw-back period? Can you get out of it, and still make a move?
Yes; but it will be complicated. In almost all cases, the sign-on a LO received in 2021/22 was bigger than their total expected income in 2023. That makes it tricky to get out of; but not impossible. Companies are getting creative with absorbing a good portion of the previous amount, and working with you to settle on a number that works for you; as well as your previous lender. Again, it’s not ideal, but we have successfully worked with LOs to get out of their current claw-back. Call anytime to discuss (860) 383-8100.
What’s the floor on the Sign-On/Hiring market?
“Let’s say you closed 20M in 2022, but YTD you’ve closed =/<4M. What can you expect from a competing lender, regarding an offer?”
Currently, many top lenders have minimum hiring standards, and require at least 4M YTD in purchase volume to even consider a candidate for hire. If you’re below this number, it doesn’t mean you’re out of luck (or the industry), but your options may be limited, and transition money may be scarce. Just remember; this is temporary.
If you find yourself in this predicament, I can imagine you feel either trapped at your current lender, or concerned your days are numbered. Call us to discuss and we’ll do the best we can to help you out of your present situation. (860) 383-8100